Before Open 12/13/2022

1. Market

HYG 0.00%↑ strong relative to SPY 0.00%↑ (bullish)

Germany and China still strong (bullish).

Breath (Highs - lows) is not very positive.

Industry Groups:

Not a big change, hanging in there, no big divergence in terms of relative strength to the SPY (neutral).

All in all, mezzo, mezzo. I would only bet here on breakouts with huge volume (China, Biotech). HYG strength is a good sign.

2. Stocks

Some sell off in China Stocks, but there were also some good breakouts ($EH), so far nothing to worry about. Liquidity in China stocks is monster high, which is good.

Biotech: Have a look at HARP 0.00%↑ on the 15 Min.

Huge volume on the first 15 Min. (almost 2 Million!). 15 Min. expansion trade worked fine (wait 15 Min., then buy the break of the high of the first 15 Min. Candle).

Yes, it tumbled later in the day, but it rocked higher first.

What I want to say here: Liquidity in certain names (China, Biotech) is there and we have some corners of frenzy in the market (not broad, but corners exist). All in all, that is not a bad sign.

So, breakouts (with huge volume!) Biotech and China are the play to concentrate.

Here are China Stocks out of stronger industries: